New Delhi : The government on Friday said that oil and gas are national resources and therefore should be within the framework of governmental and regulatory oversight. Addressing the 7th Asia Gas Partnership Summit in New Delhi Friday morning, the Prime Minister Dr. Manmohan Singh said that the economic exploitation of these resources should lead to win – win solutions for both the investors and the people.

Dr. Singh said that the government has initiated gas pricing policy reforms to incentivize production of natural gas. The Prime Minister said, the government is conscious that remunerative energy prices are needed to ensure expanded energy supply. He said, expanding the use of natural gas in the country is one of the most important and immediate ways of responding to the challenges of energy security and climate change.

Dr. Singh observed that the opening up of the oil and gas sector to private industry participation has resulted in higher domestic gas availability and has also led to growing participation by multinational corporations.

Asking the nations in the Asian region to move beyond the conventional buyer-seller relationships to more comprehensive gas and energy partnership, Dr. Singh said that the fast growing emerging markets in the region can gain in terms of securing reliable supplies of gas at affordable prices. He said, the large and growing markets in Asia also provide an opportunity for collaboration through joint research and technology development for supply of clean and cheaper energy to the masses. He said to cater to the large demand for gas, India has accelerated investment in creation of LNG re-gasification facilities

With new re-gasification LNG terminals coming up at Kochi and Dabhol, the country’s current import capacity of 14 million tonnes a a year is set to increase to 20 million tonnes a year by 2012-13. The Prime Minister said the government has also launched an ambitious pipeline development programme. He informed that the Gas Authority of India alone will expand its pipeline length from the existing 9000 kilometers to around 14,500 kilometers by 2014. Private operators are also expected to add another 5000 kilometers in the same period. He exuded the confidence that there will be country-wide gas grid of about 30,000 kilometers by the end of 12th Plan in 2017.

Dedicating to the nation the 2000 kilometer long Dahej-Vijaipur-Bawana-Nangal-Bhatinda pipeline of GAIL, Dr. Singh said that the pipeline has potential to be extended up to the border with Pakistan.

Saying that the government is also working on the development of sources of unconventional gas such as Shale gas and Coal Bed Methane, Dr. Singh informed that the mapping for the same has been undertaken and by 2013 a regulatory regime for licensing will be put in place. He said, with world’s largest coal reserves India also wants to work with international companies having expertise for exploitation of coal seam gas.

Speaking on the occasion, Petroleum and Natural Gas Minister Mr. S Jaipal Reddy said that the Petroleum and Natural Gas Regulatory Board has plans to roll out City Gas Distribution networks in over 300 geographical areas in the country. At present 51 cities and towns are covered under this network.